Centre increases minimum wage rates up to Rs 26,910 per month

In a significant move to support workers, especially those in the unorganised sector, the central government has revised the Variable Dearness Allowance (VDA), resulting in increased minimum wage rates. This adjustment aims to help workers cope with the rising cost of living, as stated by the Ministry of Labour and Employment in a release on Thursday.

New Wage Rates Effective October 1, 2024

The revised wage rates will take effect on October 1, 2024, with the last adjustment made in April 2024. Workers engaged in various sectors—including building construction, loading and unloading, watch and ward, sweeping, cleaning, housekeeping, mining, and agriculture—will benefit from the new rates.

The minimum wage rates are categorized based on skill levels (unskilled, semi-skilled, skilled, and highly skilled) and geographical areas (A, B, and C). For area “A,” the updated minimum wage rates are as follows:

• Unskilled Workers: Rs 783 per day (Rs 20,358 per month)
• Semi-Skilled Workers: Rs 868 per day (Rs 22,568 per month)
• Skilled Workers and Clerical Positions: Rs 954 per day (Rs 24,804 per month)
• Highly Skilled Workers and Watch and Ward with Arms: Rs 1,035 per day (Rs 26,910 per month)

The central government revises the VDA twice a year, effective from April 1 and October 1, based on the six-month average increase in the Consumer Price Index for industrial workers. Detailed information regarding the minimum wage rates by sector, categories, and areas is available on the Chief Labour Commissioner (Central) website at clc.gov.in.